Question: A 40% joint operator in a jointly controlled operation sells an asset to the joint operation. The asset has a fair value of $5 000

A 40% joint operator in a jointly controlled operation sells an asset to the joint operation. The asset has a fair value of $5 000 000. The carrying amount in the books of the joint operator was $4 000 000. The profit to be recognised by the seller is:

		$600 000.
		$1 000 000.
		None of the rest
		$400 000.

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